WASHINGTON, D.C.– The owners and managers of two apartment complexes in
Riverside, California have agreed to pay $390,000 in damages and penalties to
settle allegations that they sexually harassed female tenants and
discriminated against African-American and Latino tenants, the Justice
Department announced today.

The defendants in the lawsuit include the owners, William David Wingo and
Karen Wingo Cipriano, and their apartment manager, Vincent "Vinnie" Stancyk.
Mr. Wingo and Ms. Cipriano owned the 31 unit Rio Palmas complex until May
1999, currently own the 70 unit Las Casitas complex, and also own and manage
several other properties in the Riverside, California area.

The complaint, filed April 10, 2001, in federal District Court in Santa Ana,
California alleged that the defendants violated the Fair Housing Act by
discriminating against African Americans, Latinos, and women at the Rio Palmas
and Las Casitas apartments in Riverside California.

"This was an egregious case that required strong remedies," said Assistant
Attorney General Ralph F. Boyd, Jr. "This agreement makes clear that
individuals who engage in unlawful housing discrimination, and the people who
employ them, will be held accountable for the harm they cause."

"This case sheds light on one of the most discriminatory practices in housing
– denying a home to someone because of their race," said Debra W. Yang, the
United States Attorney for the Central District of California. "As the chair
of the Attorney General's Advisory Subcommittee on Civil Rights, I am
committed to eradicating illegal discrimination and other civil rights
violations throughout my district."

The complaint alleged that Mr. Stancyk subjected female tenants at the complex
to repeated and unwelcome sexual harassment, including conditioning the
privileges of tenancy on tenants performing sexual acts. The Justice
Department alleged that Mr. Wingo and Ms. Cipriano knew or should have known
about this harassment and took no action to halt or prevent it. In addition,
the Justice Department alleged that the defendants engaged in a variety of
discriminatory conduct toward black and Latino apartment-seekers, including:
refusing to rent to them, throwing away their rental applications, using
racial epithets toward them, refusing to let them have minority guests, and
evicting them because of their race or national origin.

Under the agreement, defendants Wingo and Cipriano will:

pay $355,000 to persons who were harmed by the discrimination at the
complexes;

pay a $35,000 civil penalty to the United States;

repair the credit histories and remove judgment liens for tenants who were
wrongfully evicted;

establish a comprehensive non-discrimination and anti-harassment policy and
complaint procedure at their complexes they own and manage;

retain an independent fair housing organization to train all of their
employees on the requirements of the Fair Housing Act and other
anti-discrimination laws; and

retain an independent fair housing organization to conduct periodic testing
at their properties to determine whether employees are complying with such
laws.

Under the agreement, which still must be approved by the United States
District Court in Santa Ana, California, Mr. Stancyk will be barred from
working in the rental real estate business. The agreement also provides that
Mr. Stancyk, whose employment with Wingo and Cipriano has been terminated,
will not work in the rental housing business again.

Anyone who has information about this case, or believes he or she was a victim
of discrimination at the Rio Palmas or Las Casitas Apartments in Riverside,
Calif., should call the Justice Department at 1-800-896-7743 or 202-514-4713.
The federal Fair Housing Act prohibits discrimination in housing on the basis
of race, color, religion, national origin, sex, disability, or having children
under 18. Persons who believe that they have been victims of unlawful housing
discrimination should contact the Department of Housing of Urban Development
(HUD) at 1-800-669-9777. Additional information is available on the HUD
website at www.hud.gov.